Spain's central bank, the Bank of Spain, has issued an official statement on cryptocurrency-related investments. According to the bank, cryptocurrencies and the supporting technology, may "galvanize and modernize" the financial system in the coming years. However, such assets currently pose high risks due to extreme volatility, complexity and lack of transparency.
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"The European Union still lacks a regulatory framework that provides guarantees and safeguards similar to those applicable to financial products for crypto-assets such as Bitcoin," the regulator emphasized.
Spain's watchdog also pointed out that cryptocurrencies cannot be considered as a store of value over their high volatility. The Bank of Spain reminded various cryptocurrency custodians are often not based in the country, which means that the resolution of any dispute may be costly and lie outside the remit of the Spanish authorities.
In October last year, the Government of Spain initiated work on a bill, according to which, crypto hodlers will be obliged to disclose their holdings and any gains booked on the assets.
According to government spokeswoman Maria Jesus Montero, the new regulations will be just a part of a broader package of legislation focused on cracking down tax fraud. However, it is unknown when exactly Spain is going to tighten regulation.
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